Summer Budgeting

We can all feel it. It’s so close. Summer. The thing every student looks forward to, the much needed respite and recuperation from a long year of hard work. Although we still have to get through the last bit of classes and then the long-awaited finals week, you’ve undoubtedly started at least thinking about what you want to do with your summer.

Whatever your plans are, it’s good to start thinking about how you want to manage your finances with all your new-found free time, or perhaps larger income. Either way, here are some tips for how to save money while spending money over summer break:

• Track your expenses:The only way to know what you’re saving is to know what your spending. Make an excel spreadsheet or download one of the many apps available for budgeting and make categories for each of the things you buy, like food, entertainment, bills, and fun. Don’t forget to leave out the little things, even a cup of coffee. It all adds up.
• Create a budget: Once you have started to assess your spending habits, think about how much you want to save. Is it a dollar amount (i.e. $100/paycheck) or a certain percentage (15%, 25%, 50%)? How does your current spending line up with your saving? Saving right now is more important than spending, so setting that amount first is the priority, and then if you find that you saving/spending does not equal your income, it’s time to reassess.
• Stick to your budget: This is arguably the hardest step. Sometimes it’s hard to put money aside when there’s something we really want, or the temptation to go out with friends is right there, but the important thing to remember is that you’re saving for your future goals, whatever those may look like for you. Use things like direct deposit that automatically sets aside your chosen percentage into your savings account, or having someone close to you keeping you accountable for your goals. It may be difficult in the short term, but the long term literal and metaphorical pay-off is worth it.

This is the most basic form of creating a budget, but there are truly so many different ways to set one up, keep track of it, and stay accountable. If you need a more complex budget for your situation, don’t be afraid to reach out or do some research on how to make those goals happen.

And don’t forget, you’ve completed another successful school year, and that’s something to be celebrated! Plan a fun outing with your friends before you all go home for the summer! Just make sure you record the expense and it fits within your budget.